I-3 - Taxation Act

Section 1129.4.10 Disposition versions

2006-03-01

1129.4.10. Every corporation that is deemed to have paid an amount to the Minister, under section 1029.8.36.0.25, on account of its tax payable under Part I, in relation to acquisition costs incurred in respect of qualified property or rental expenses paid in respect of such property, shall pay the tax referred to in the second paragraph for a taxation year, in this section referred to as the “repayment year”, in which an amount relating to the acquisition costs or rental expenses is, directly or indirectly, refunded or otherwise paid to the corporation or allocated to a payment to be made by the corporation.

The tax to which the first paragraph refers is equal to the amount by which the aggregate of all amounts each of which is an amount that the corporation is deemed to have paid to the Minister under section 1029.8.36.0.25 or 1029.8.36.0.32, in relation to the acquisition costs or rental expenses, exceeds the total of

(a)  the aggregate of all amounts each of which is an amount that the corporation would be deemed to have paid to the Minister under section 1029.8.36.0.25 or 1029.8.36.0.32, in relation to the acquisition costs or rental expenses, if every amount that is, at or before the end of the repayment year, so refunded, paid or allocated, in relation to the costs or expenses, were refunded, paid or allocated in the taxation year during which the corporation incurred the acquisition costs or paid the rental expenses to which the amount refunded, paid or allocated relates; and

(b)  the aggregate of all amounts each of which is a tax that the corporation is required to pay to the Minister under this section for a taxation year preceding the repayment year, in relation to the acquisition costs or rental expenses.

In addition, if a corporation carried on or could carry on its business in an information technology development centre in a particular taxation year that begins before 21 December 2001 for which the corporation is deemed to have paid an amount to the Minister in respect of acquisition costs or rental expenses under section 1029.8.36.0.6, as it read for the particular year, the first and second paragraphs, subject to the fourth paragraph, shall be read as follows:

“1129.4.10. Every corporation that is deemed to have paid an amount to the Minister, under section 1029.8.36.0.6 or 1029.8.36.0.25, on account of its tax payable under Part I, in relation to acquisition costs incurred in respect of qualified property or rental expenses paid in respect of such property, shall pay the tax referred to in the second paragraph for a taxation year, in this section referred to as the “repayment year”, in which an amount relating to the acquisition costs or rental expenses is, directly or indirectly, refunded or otherwise paid to the corporation or allocated to a payment to be made by the corporation.

The tax to which the first paragraph refers is equal to the amount by which the aggregate of all amounts each of which is an amount that the corporation is deemed to have paid to the Minister in relation to the acquisition costs or rental expenses, under section 1029.8.36.0.6 or 1029.8.36.0.11 or under section 1029.8.36.0.25 or 1029.8.36.0.32, exceeds the total of

(a) the aggregate of all amounts each of which is an amount that the corporation would be deemed to have paid to the Minister in relation to the acquisition costs or rental expenses, under section 1029.8.36.0.6 or 1029.8.36.0.11 or under section 1029.8.36.0.25 or 1029.8.36.0.32, if every amount that is, at or before the end of the repayment year, so refunded, paid or allocated, in relation to the costs or expenses, were refunded, paid or allocated in the taxation year during which the corporation incurred the acquisition costs or paid the rental expenses to which the amount refunded, paid or allocated relates; and

(b) the aggregate of all amounts each of which is a tax that the corporation is required to pay to the Minister in relation to the acquisition costs or rental expenses for a taxation year preceding the repayment year, under this section or under section 1129.4.4.2, as it read for that preceding taxation year.”

In the text of the first and second paragraphs of this section enacted by the third paragraph, a reference to section 1029.8.36.0.6 or 1029.8.36.0.11 shall be a reference to that section as it read for a taxation year in which an amount is deemed to have been paid under that section.

However, no tax is payable under this section if, for the repayment year, section 1129.4.10.1 applies in respect of the property or if, for a preceding taxation year, that section or section 1129.4.4.3, as it read for that preceding taxation year, applied in respect of the property.

2000, c. 39, s. 238; 2002, c. 40, s. 262; 2003, c. 9, s. 395.